FERC Account 394 – Tools, Shop and Garage Equipment
FERC Account 394 records the cost of tools, shop equipment, and garage equipment used in utility operations and vehicle maintenance.
Definition
Record in this account the cost of tools, shop equipment, and garage equipment used in utility operations.
Account 394 captures the cost of hand tools, power tools, shop machinery, and garage equipment used in maintaining utility facilities and vehicles. This includes equipment in maintenance shops, vehicle repair facilities, and field tool inventories. Individual small tools below the capitalization threshold are typically expensed rather than capitalized.
What is typically included
- Capitalized hand tools, power tools, and tool sets meeting the capitalization threshold
- Shop machinery for fabrication and repair operations
- Garage equipment for vehicle maintenance (lifts, diagnostic equipment)
- Welding equipment, hydraulic presses, and machine tools
- Specialized maintenance equipment for utility plant
What is generally not included
- Small tools below the capitalization threshold (expensed)
- Transportation vehicles maintained in the garage (Account 392)
- Power-operated construction equipment (Account 396)
- Laboratory equipment (Account 395)
- Stores equipment in warehouses (Account 393)
Why this account matters
- Tracks capitalized tool and shop equipment investment for depreciation
- Supports equipment overhead calculations charged to construction projects
- Required for FERC Form 1 general plant-in-service reporting
- Enables cost allocation of maintenance shop services to operating departments
- Provides basis for monitoring and replacing critical maintenance tools and equipment
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Disclaimer: The material in this article is for informational purposes only and should not be taken as legal or accounting advice provided by Utility Accounting & Rates Specialists, LLC. You should seek formal advice on this topic from your accounting or legal advisor.